Freaky Friday Potpourri: Breakout or Fakeout?

Bulls looking to build momentum.

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Following a slithery four-session span-the Dow Jones Industrial Average is 45 cents lower than last Friday-we power up this frisky pup for Mary Jane's last dance.

To be sure, the tape feels a lot better than it looks.After what we've recently seen-most notably Ambac (ABK) and the reaction, or lack thereof, by the financials- Hoofy has some pep in his step as we ready for the Freak that is Friday.

Now, if you were to ask me how I "felt," I would offer they wanna trade higher. The S's have some reverse dandruff and IF (huge, monster, engorged IF) Hoofy can spur the herd through S&P 1405, we could see a squeal of pleasure relief that would friggin' kill a horse.

How am I positioned? With discipline, thank you very much. I day-traded from the long side and I'm going home flat on that inventory. I've got some longer term plays in the newspapers (Gannett (GCI) calls, McClatchey (MNI) stock)--as well as some 'situational stuff'-which I'm holding. The balance of my book will wonder twin its way (form of dry powder!) into the final fifth of this freaky week.

Random Thoughts

As Pepe offered yesterday, the collective exhalation you're hearing is a function of the system having held together.The question, quite naturally, is when attention will shift back to the slowing economy, strapped consumer, dilutive transactions and the aforementioned imbalances.The answer, quite possibly, may be Wednesday's FOMC meeting.

Mike O'Rourke, the talented Chief Market Strategist at BTIG, reminds us "During the 2001-2002 bear market, there were 5 major rallies generally lasting anywhere from 1-3 months trough to peak.The approximate gains were 8%, 21.5%, 25%, 9.5%, 24.5%.During those years, the high was 1383 and the low was 768.We will not be surprised if this current rally, which is 10.5% off the March low, has another significant leg."

While speaking at a function a while back, someone asked me what my proudest professional accomplishments were.After a pensive moment, I offered "My failures. You never know what you're made of until you're tested."True dat.If I've come to learn anything over my career, it's that tenacity, resolve and desire are the hallmarks of any successful venture.